MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 21 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which tax is paid to a third party? |
| A. | Indirect |
| B. | Income |
| C. | Flat |
| D. | Direct |
| Answer» B. Income | |
| 2. |
Which of these is an example of eminent domain? |
| A. | a corporator forces public for sell their lands to him |
| B. | a state forces people to sell their fields for building highway |
| C. | Both A & B |
| D. | None of the above |
| Answer» C. Both A & B | |
| 3. |
Which of these investments may pay dividends? |
| A. | Savings account |
| B. | Stocks |
| C. | Bonds |
| D. | Certificates of deposit |
| Answer» C. Bonds | |
| 4. |
Which of the following bonds has the greatest interest rate price risk? |
| A. | a 10 year, 5% coupon bond |
| B. | a 5 year, 5% coupon bond |
| C. | a 5 year, 10% coupon bond |
| D. | a 10 year, 10% coupon bond |
| Answer» B. a 5 year, 5% coupon bond | |
| 5. |
Which is the most accurate statement about trade? |
| A. | Trade makes some nations better off and others worse off |
| B. | Trading for a good can make a nation better off only if the nation cannot produce that good itself |
| C. | Trade helps rich nations and hurts poor nations |
| D. | Trade can make every nation better off |
| Answer» E. | |
| 6. |
What is the main function of international monetary fund  ? |
| A. | Help to solve Balance of Payment problems of member countries |
| B. | Act as private sector lending arm of the World Bank |
| C. | Finance investment loans to developing countries |
| D. | Arrange international deposits from banks |
| Answer» B. Act as private sector lending arm of the World Bank | |
| 7. |
The primary purpose of life insurance is to provide |
| A. | Safe investment avenue |
| B. | financial protection to surviving dependents after the death of an insured |
| C. | Tax rebates |
| D. | Wealth accumulation |
| Answer» C. Tax rebates | |
| 8. |
The first step in solving an Ethical Dilemma is to |
| A. | identify the alternatives |
| B. | identify an etical situation and ethical issues involved |
| C. | weigh the impact of each alternative on various stakeholders. |
| D. | recognize and analyze the principal elements in the situation. |
| Answer» C. weigh the impact of each alternative on various stakeholders. | |
| 9. |
The chart of accounts is designed to |
| A. | alphabetized the accounts to make reading easier for its financial statement users |
| B. | summarize the transactions and determine their ending balances |
| C. | meet the information needs of a company and other financial statement users |
| D. | analyse the accounts and organize them in order of dollar amount to simplify the accounting information for users |
| Answer» D. analyse the accounts and organize them in order of dollar amount to simplify the accounting information for users | |
| 10. |
Standard deviation measures which type of risk? |
| A. | Non diversifiable |
| B. | Economic |
| C. | Systematic |
| D. | Total |
| Answer» E. | |
| 11. |
Select the correct statement regarding fixed costs. |
| A. | Because they do not change, fixed costs should be ignored in decision making. |
| B. | The fixed cost per unit decreases when volume increases. |
| C. | The fixed cost per unit does not change when volume decreases. |
| D. | The fixed cost per unit increases when volume increases. |
| Answer» C. The fixed cost per unit does not change when volume decreases. | |
| 12. |
Securities and Exchange Board of India (SEBI) is related to |
| A. | Government of India |
| B. | Banks |
| C. | State Government |
| D. | Share Market |
| Answer» E. | |
| 13. |
Party account can be created through_x005F_x000D_ |
| A. | Inventory creation window |
| B. | Group creation window |
| C. | Ledger creation window |
| D. | Any of the above |
| Answer» D. Any of the above | |
| 14. |
Managerial Accounting is also called |
| A. | Control accounting |
| B. | Management accounting |
| C. | Cost accounting |
| D. | Both B & C |
| Answer» E. | |
| 15. |
Internal controls are concerned with |
| A. | the extent of government regulations |
| B. | preparing income tax returns |
| C. | safeguarding assets |
| D. | only manual systems of accounting |
| Answer» D. only manual systems of accounting | |
| 16. |
Financial statements are prepared in the following order. |
| A. | Income statement - Balance sheet - Statement of retained earnings |
| B. | Income statement - Statement of retained earnings - Balance sheet |
| C. | Balance sheet - Statement of retained earnings - Income statement |
| D. | Statement of retained earnings - Balance sheet - Income statement |
| Answer» C. Balance sheet - Statement of retained earnings - Income statement | |
| 17. |
Accrual accounting is used because |
| A. | it provides a better indication of ability to generate cash flows than the cash basis. |
| B. | it recognizes revenues when cash is received and expenses when cash is paid. |
| C. | cash flows are considered less important. |
| D. | All of the above |
| Answer» B. it recognizes revenues when cash is received and expenses when cash is paid. | |
| 18. |
Accounts that normally have debit balances are |
| A. | Assets,Expenses,and Common stock |
| B. | Assets,Dividends,and Expenses |
| C. | Assets,Expenses,and Revenues |
| D. | All of the above |
| Answer» C. Assets,Expenses,and Revenues | |
| 19. |
A distinguishing feature of managerial accounting is |
| A. | general-purpose reports |
| B. | very detailed reports |
| C. | quarterly and annual reports |
| D. | external users |
| Answer» C. quarterly and annual reports | |
| 20. |
A Credit may signify a |
| A. | Increase in the liability account |
| B. | Decrease in an asset account |
| C. | Increase in the capital stock account |
| D. | All of the above |
| Answer» E. | |
| 21. |
A debit signifies a decrease in |
| A. | revenues |
| B. | liability |
| C. | owner's equity |
| D. | All of the above |
| Answer» E. | |